Starting October 9, transfers in the EU will no longer be the same. A new bank verification comes into effect

Starting October 9th, 2025, banks in the EU, beginning with those in the Eurozone, will implement a new system to verify recipient names against International Bank Account Numbers (IBANs) for all bank transfers. This change aims to enhance payment security and reduce errors by ensuring the name entered matches the account holder. This initiative marks a significant step in improving the digital financial infrastructure across the European Union. The new verification process will check the name provided against the IBAN before a transfer is authorized. If the name matches completely, the transfer proceeds without alerts. Partial matches, such as minor spelling differences, will trigger an alert, allowing users to review the information and proceed at their own risk. If there's no match, an alert will notify the user without revealing the account holder's actual name. This update affects all SEPA and immediate transfers, but does not block payments. The system is designed to inform users, not prevent transactions. Users can still proceed with a transfer even if the name and IBAN do not match, but the bank will provide greater transparency. This change will impact anyone initiating transfers within the EU, improving accuracy and reducing the potential for funds to be sent to incorrect recipients, directly impacting fintech and e-commerce. The implementation of this verification system, which is a part of a wider effort to standardize digital financial practices, will be performed at no additional cost to the user. Banks like Nickel have clarified that recurring transfers scheduled before October 9th, 2025, will not be subject to this verification, though new orders will be verified once during setup. This aims to streamline the digital payment process.